Official List

Overview

The Official List holds significant importance for investors and market participants in understanding the trading landscape of the London Stock Exchange (LSE). The term “Official List” pertains to:

Comprehensive List of Securities: A catalog of all securities traded on the main market of the LSE.
Daily Record of Transactions: A detailed list prepared daily by the LSE, which records all the bargains (transactions) made in listed securities, including supplementary information such as dividend dates, rights issues, and prices.

Detailed Definition

1. Comprehensive List of Securities

The Official List includes all securities authorized to be traded on the main market of the LSE. This list is crucial for investors looking to track or invest in listed securities, ensuring compliance with the exchange’s rules and requirements. The list also encompasses any securities that are currently suspended.

2. Daily Record of Transactions

The daily Official List features:

Bargains Transacted: All transactions executed within the day for listed securities.
Dividend Dates: Information on when dividends will be paid to shareholders.
Rights Issues: Details of any rights issues allowing existing shareholders to purchase additional shares, usually at a discount.
Prices: Updated daily trading prices of listed securities.
Other Information: Additional relevant data aiding investors’ decisions.

Examples

A company’s inclusion in the Official List: When a company’s stock is included on the Official List, it means it has met the LSE’s stringent listing requirements, providing potential investors with higher confidence.
Daily record entries: Investors might analyze daily records in the Official List to review historical trading data, track dividend payouts, and understand the market’s direction.

Frequently Asked Questions (FAQs)

What is the purpose of the Official List?

The Official List serves as a comprehensive directory of securities that meet the LSE’s requirements, ensuring transparency for investors and providing essential data for market analysis daily.

How often is the Official List updated?

The comprehensive list of securities is periodically updated by the LSE based on listing and delisting activities. The daily record of transactions is updated every trading day.

Who regulates the Official List?

The Official List is regulated by the London Stock Exchange and governed by the Financial Conduct Authority (FCA).

Where can I access the Official List?

The Official List can be accessed through the Financial Conduct Authority’s website or directly from the LSE’s data services.

Why is the Official List important for investors?

The Official List is pivotal for investors as it discloses approved and regulated securities, thereby ensuring informed investment decisions in a fair and transparent market.

Listed Security: A security that has been accepted for trading on an official stock exchange.
Listing Requirements: A set of criteria a company must meet to be listed on an exchange.
Yellow Book: Historical reference to the rules and guidance for securities listed on the LSE, now succeeded by FCA regulations.

Online Resources

Suggested Books

“Financial Markets and Institutions” by Frederic S. Mishkin and Stanley G. Eakins.
“Investment Analysis and Portfolio Management” by Frank K. Reilly and Keith C. Brown.
“Trading and Exchanges: Market Microstructure for Practitioners” by Larry Harris.

Accounting Basics: “Official List” Fundamentals Quiz

### What does the Official List of the London Stock Exchange include? - [x] All securities traded on the main market. - [ ] Only stocks currently in high demand. - [ ] Personal investment portfolios. - [ ] Government bonds exclusively. > **Explanation:** The Official List includes all securities traded on the main market of the London Stock Exchange. ### What additional information is provided in the daily prepared Official List? - [x] Transactions, dividend dates, rights issues, and prices. - [ ] CEO profile of listed companies. - [ ] World economic forecasts. - [ ] Currency exchange rates. > **Explanation:** The daily Official List prepared by the LSE includes transactions, dividend dates, rights issues, and prices. ### How often is the daily record of the Official List updated? - [x] Every trading day. - [ ] Weekly. - [ ] Monthly. - [ ] Annually. > **Explanation:** The daily record in the Official List is updated every trading day. ### Which regulatory body governs the Official List? - [x] Financial Conduct Authority (FCA). - [ ] Bank of England. - [ ] European Central Bank. - [ ] World Trade Organization (WTO). > **Explanation:** The Official List is regulated by the Financial Conduct Authority (FCA). ### Why is the Official List important for transparency? - [x] It provides comprehensive information about traded securities. - [ ] It restricts insider trading information. - [ ] It forecasts stock market trends. - [ ] It limits the types of securities trading insights. > **Explanation:** The Official List is important for transparency as it provides detailed and comprehensive information regarding traded securities. ### Can the Official List be accessed online? - [x] Yes, via the FCA’s and LSE’s websites. - [ ] No, only in print form. - [ ] Only via subscription newsletters. - [ ] Only at specific government offices. > **Explanation:** The Official List can be accessed online through the Financial Conduct Authority’s and London Stock Exchange’s websites. ### What main market do the securities in the Official List trade on? - [x] London Stock Exchange. - [ ] New York Stock Exchange. - [ ] NASDAQ. - [ ] Tokyo Stock Exchange. > **Explanation:** The securities in the Official List trade on the main market of the London Stock Exchange. ### What kind of issues can be found in the Daily Official List? - [x] Rights issues. - [ ] Public announcements. - [ ] Employment rates. - [ ] Fiscal policies. > **Explanation:** Rights issues, among other data like dividend dates and transaction records, can be found in the Daily Official List. ### Are dividend payment dates included in the Official List's daily communications? - [x] Yes. - [ ] No. - [ ] Only for select companies. - [ ] Only quarterly. > **Explanation:** Dividend payment dates are included in the Official List’s daily communications. ### What purpose does access to daily records serve for investors? - [x] To review transactional history and market conditions. - [ ] To manage personal finances better. - [ ] To apply for loans. - [ ] To plan vacations. > **Explanation:** Access to daily records allows investors to review transactional history, understand dividend timings, analyze market conditions, and guide investment decisions.

Thank you for exploring the intricate details of the Official List and taking our comprehensive quiz to solidify your understanding of this critical aspect of financial markets!